RSU tax rate in Washington: federal, FICA, and no state income tax

Washington has no personal income tax on wages — RSU vest FMV is not subject to WA state income tax when you are a Washington resident on vest. That is why searches for a Washington RSU tax rate return federal-only numbers. The vest event is still fully taxable at the federal level and for FICA purposes nationwide.

Federal progressive tax applies to vest FMV the same way in Washington as in California or New York. FICA runs on vest wages with Social Security stopping at the annual wage base and Medicare applying to the full amount. Employer supplemental withholding on equity uses IRS Pub. 15 flat methods — that is federal withholding, not a Washington rate.

Seattle and Redmond tech employees often compare Washington to California when evaluating offers or planning a move. Washington removes the state income tax layer that California imposes on vest wages — but federal tax and FICA remain and can still create a meaningful withholding gap at high income.

Moving from California to Washington mid-year does not erase CA tax on compensation connected to California workdays or residency before the move. A vest that occurred while you were still a California resident may remain California-connected. Post-move vests as a Washington resident follow Washington rules — no state income tax on wages for typical residents.

The practical planning number for Washington is federal marginal rate plus remaining FICA on the vest FMV. No Washington state estimated income tax applies — but federal estimated payments may still be needed when supplemental withholding falls short of your marginal rate. W-2 Boxes 16–17 may show zero WA state wages for pure WA resident vests.

• ✓Pay stub: federal and FICA on vest, state line zero for WA resident.
• ✓Withholding rate on vest confirmation vs federal supplemental tables.
• ✓YTD wages for Social Security cap status before large vest.
• ✓Move date if relocated from taxed state during year.
• ✓Prior-state W-2 allocation if multi-state.
• ✓Additional Medicare on large salary plus RSU stack.
• ✓Federal withholding gap calculator with WA selected.

• ✓Vest pay stub with federal and FICA lines.
• ✓W-2 Box 1 and Boxes 4–6 for federal and FICA totals.
• ✓Vest confirmation withholding method.
• ✓Move documentation if part-year other state.
• ✓Washington vs California calculator output if comparing offers.

• ✓Multi-state vest in year you moved to or from Washington.
• ✓Employer withholds another state's tax while you live in WA.
• ✓City payroll tax questions for Seattle-area employer.
• ✓Stock options plus RSU with international assignment.